Public servants will be able to work until they are 75, a decision designed to slow the rising cost of the federal governments’ superannuation bill.

MPs’ staff numbers will also be increased. At a cost of $54.2 million over four years, government staff numbers will rise from 368 to 420, opposition from 77 to 88. The Greens and independent MPs will get more parliamentary personnel to help manage the consultation required by minority government.

The extra staff follows a review of MPs’ staff conducted by Alan Henderson. Special Minister of State
Gary Gray
said even with the increases the staffing levels would be 10 per cent below the highest levels under the Howard government.

The staff increase is balanced by savings in a number of areas in the public service.

Treasury’s mid-year forecasts show that lifting the age to which public servants can work from 70 to 75 will save $35 million over three years in reduced super.

The government will achieve further savings by slashing the number of diplomats as well as costs in foreign posts to produce $45.5 million over three years.

Another measure is to reduce spending on the Australian Public Service Commission for changes to the federal bureaucracy following a review by Prime Minister and Cabinet Department head
Terry Moran
.

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Cuts to government advertising across departments are expected to squeeze out $60 million over four years.

The government is improving the release of previously secret government information by allocating money to the Office of the Commonwealth Ombudsman and the Office of the Inspector-General of Intelligence and Security.

This will allow both offices to undertake investigation, monitoring and reporting functions for public interest disclosures by federal government agencies. The funding fulfils a commitment made by the government as part of its agreement with independent MPs to form a minority government.

The government’s mid-year forecasts show that departments will have to find unspecified savings to pay for the additional costs of running programs.

For instance, the government will introduce tougher rules as part of a crackdown on welfare payments. The cost of meeting this election promise will be met from within existing resources in the Department of Eduction, Employment and Workplace Relations and Centrelink.

The cost of another election commitment to re-invigorate the Army Reserve system by integrating reservists with regular forces will be met from within existing department of Defence resources.

The forecasts reveal the cost of establishing the new Department of Regional Australia, Regional Development and Local Government at $38 million over four years. The funding is in addition to resources already transferred from other parts of the bureaucracy and was required as part of the deal struck with the independent MPs.

Other public service bodies being established include the $5.6 million Climate Change Commission to promote an informed debate over global warming and a carbon price. The government is also spending $5.2 million to set up the Multi-Party Climate Change Committee to examine options for the introduction of a carbon price.